EFFICIENT UNIT LOADS - ECR Community

The current situation, in which manufacturers typically
use pallets and retailers favour roll cages, is a barrier to
Efficient Replenishment. As cross-docked volume
increases, the need for an integrated tertiary item –
used across the total supply chain – becomes critical.
Suppliers of tertiary items need to develop a tertiary
item which combines the advantages of pallets with
those of role cages to enable effective cross-docking.
The Dolly is one such item but it is only suitable for
those applications using RTI.
Technical developments are required to integrate
pallets and roll cages.
EUL projected savings of 1.2% of retail sales price are
not evenly spread among manufacturers and retailers.
Retailers expect to gain three quarters of the savings,
mainly through more efficient assortment creation and
shelf replenishment. However, retailers’ operational
gains are likely to be manufacturers’ investment needs.
For example, switching to RTI to achieve more efficient
retail shelf operations will require manufacturers to
invest in the production line.
EUL opportunities are not equally spread between
manufacturers and retailers.
Future pricing must incorporate a suitable
compensation mechanism to ensure that such
investment takes place.
A clear vision, leadership and a long-term perspective
are required to ensure that projected ECR savings
become a reality.
Efficient Unit Load developments require a processand
category-oriented approach.
In order to make best use of spaces available in the
supply chain and to minimise the overall handling
along the chain, the unit loads design must be very
process-oriented, together with the principal
replenishment flow modules, allowing category-specific
increases in cross docking and break bulk operations
EUL make optimal use of spaces available in the
supply chain and minimise handling.
This Report provides guidelines rather than standards.
It should be used by standards bodies, and by
manufacturers, retailers and service providers, working
together to design and operate Efficient Unit Loads
supply chains. This will “fulfil consumer wishes better,
faster and at less cost.”
Source: A.T. Kearney
Space
Utilisation
Direct
Cross
Space Utilisation
The Efficient Unit Loads Report 7
dock
Break
bulk
Via stock
Manufacturer Cost Impact
0.3%
+
0.9%
Handling
Efficiency
Handling Efficiency
Retailer Cost Impact
Source: A.T. Kearney Survey, Efficient Unit Loads project
Other
Other